PFAs invest N1.779tn pension funds in fixed deposits, CP, others
PenCom
PFAs invest N1.779tn pension funds in fixed deposits, CP, others
Nike Popoola
Pension Fund Administrators (PFAs) have invested N1.779tn of the total funds under the Contributory Pension Scheme (CPS) in money market instruments as of the end of March.
The money market instruments consist of fixed deposits, commercial papers, bank acceptance and foreign money market instruments.
The National Pension Commission (PenCom) disclosed this in its ‘unaudited report on pension funds industry portfolio for the period ended 31 March 2024, titled ‘Approved Existing Schemes, Closed Pension Fund Administrators and RSA Funds (Including unremitted contributions @CBN & legacy funds).
According to the report, N1.393tn was invested in fixed deposit and bank acceptance, N299bn was invested in commercial papers, while N86.169bn was invested in foreign money market instruments.
The report obtained by Daily Economy revealed that the rest of the funds were invested in domestic and foreign ordinary shares, Federal Government securities, corporate debt securities, and mutual funds.
Total funds under the CPS in the period under review stood at N19.669tn.
PenCom stated in its investment regulation guidelines that, the PFAs shall maintain a Multi-Fund Structure as provided in its regulation, to govern the investment of pension fund assets of RSA funds.
In addition to the requirements of other guidelines issued by the Commission on corporate governance, ethics and business practices, it added that, each PFA shall establish an Investment Strategy Committee as well as a Risk Management Committee, in compliance with the Pension Reform Act 2014.
